News and Analysis
November 22, 2024
The Energy and Petroleum Regulatory Authority (EPRA) has released the fuel prices for the period between 15th August 2024 and 14th September 2024.
In the latest review, fuel prices remain unchanged, with super petrol retailing at Ksh188.84, diesel at Ksh171.60, and kerosene at Ksh161.75 in Nairobi, effective from midnight.
The authority added that the 16% VAT on fuel would remain, raising questions on how the government would respond to a Court of Appeal ruling that nullified some provisions of the Finance Act of 2023 - including the increase of VAT to 16%.
"The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020," EPRA announced in a statement.
Read also: What the Nullification of Finance Act 2023 Means for the Housing Levy & Other Tax Laws
EPRA noted that the average landed cost of imported super petrol decreased by 1.06% from US$716.03 per cubic metre in June 2024 to US$708.47 in July 2024, while diesel increased by 1.62% from US$682.73 to US$693.82 per cubic metre, and kerosene rose by 1.87% from US$692.80 to US$705.74 per cubic metre.
In Mombasa, residents will pay Ksh185.66 for super petrol, Ksh168.43 for diesel, and Ksh158.70 for kerosene, while in Nakuru, super petrol will cost Ksh187.90, diesel Ksh171.04, and kerosene Ksh161.27. In Eldoret, super petrol will retail at Ksh188.67, diesel at Ksh180.81, and kerosene at Ksh162.04, with Kisumu residents paying Ksh188.66 for super petrol, Ksh171.81 for diesel, and Ksh162.04 for kerosene.
Read also: Ruto's Cabinet Nominees Declare Their Wealth- Full List
Energy Cabinet Secretary Opiyo Wandayi has vowed to reduce the cost of electricity, which he described as unbearable for many Kenyans.
Speaking during his inauguration on Wednesday 15th August, Wandayi outlined a plan to reduce system losses from 23% to 15%, which he believes will make electricity more affordable.
He emphasised the importance of transparency, stating, "We want to inculcate a culture and spirit of openness and transparency in the management of our ministry affairs."
Wandayi also announced the introduction of regular roundtable engagements with consumers to ensure public feedback informs policy decisions.
This comes three days after the EPRA announced an increase in the cost of electricity in Kenya, driven by a rise in both the fuel cost charge and the forex fluctuation charge.
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